TORONTO, Aug. 24, 2022 /CNW/ - TD Asset Management Inc. ("TDAM") today announced a notional non-cash reinvested distribution (a "Notional Distribution") for the TD Morningstar ESG U.S. Corporate Bond Index ETF (the "TD ETF"). A Notional Distribution occurs when a distribution from the TD ETF is made in the form of units, and then immediately consolidated with the units held prior to the distribution, so that the total number of units held after the distribution is identical to the number of units held prior to the distribution.
The Notional Distribution has been made to all unitholders of record of the TD ETF as at June 30, 2022:
Fund Name | Ticker | Non-Cash |
TD Morningstar ESG U.S. Corporate Bond Index ETF | TMUC | 0.32246 |
Up until the record date, the TD ETF did not qualify as a mutual fund trust under the Income Tax Act (Canada) (the "Tax Act") and was considered a unit trust, as such term is defined under the Tax Act. As at the record date indicated above, the TD ETF qualified to be a financial institution, as defined under the Tax Act, for purposes of the "mark-to-market" rules contained in the Tax Act because one or more financial institutions held more than 50% of the market value of the TD ETF.
The Tax Act contains special rules for determining the income of a financial institution, including, but not limited to, the realization of all unrealized gains or losses on mark-to-market property held by the financial institution on income account at the end of any given tax year. In acknowledging this change of status, the TD ETF was required to recognize a deemed year-end for tax purposes and distribute any net income (including unrealized and realized capital gains as ordinary income) earned by the TD ETF up until the deemed year-end (reflected by the record date indicated above).
In early 2023, the tax characteristics of all distributions for the year 2022 for the TD ETF will be reported to brokers via the Canadian Depository for Securities (CDS).
For more information regarding the TD ETFs, visit TDAssetManagement.com.
Commissions, management fees and expenses all may be associated with investments in exchange- traded funds (ETFs). Please read the prospectus and summary document(s) before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns.
The Morningstar® Canada Corporate Bond Sustainability IndexTM and the Morningstar® US Corporate Bond Sustainability IndexTM are service marks of Morningstar, Inc. and have been licensed for use for certain purposes by TD Asset Management Inc. TD Morningstar ESG U.S Corporate Bond Index ETF is not sponsored, endorsed, sold or promoted by Morningstar, and Morningstar makes no representation regarding the advisability of investing in the TD ETFs.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
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About TD Asset Management Inc.
TD Asset Management Inc. ("TDAM"), a member of TD Bank Group, is a North American investment management firm. TDAM offers investment solutions to corporations, pension funds, endowments, foundations and individual investors. Additionally, TDAM manages assets on behalf of almost 2 million retail investors and offers a broadly diversified suite of investment solutions including mutual funds, professionally managed portfolios and corporate class funds. Asset management businesses at TD manage $398 billion in assets. Aggregate statistics are as of June 30, 2022, for TDAM and Epoch Investment Partners, Inc. TDAM operates in Canada and Epoch Investment Partners, Inc. operates in the United States. Both entities are affiliates and are wholly-owned subsidiaries of The Toronto-Dominion Bank.
SOURCE TD Asset Management Inc.
